A Quarterly, Utilization-Adjusted Series on Total Factor Productivity

2012-19 | April 1, 2014

This paper describes a real-time, quarterly growth-accounting database for the U.S. business sector. The data on inputs, including capital, are used to produce a quarterly series on total factor productivity (TFP). In addition, the dataset implements an adjustment for variations in factor utilization—labor effort and the workweek of capital. The utilization adjustment follows Basu, Fernald, and Kimball (BFK, 2006). Using relative prices and input-output information, the series are also decomposed into separate TFP and utilization-adjusted TFP series for equipment investment (including consumer durables) and “consumption” (defined as business output less equipment and consumer durables).

Article Citation

G. Fernald, John. 2012. “A Quarterly, Utilization-Adjusted Series on Total Factor Productivity,” Federal Reserve Bank of San Francisco Working Paper 2012-19. Available at https://doi.org/10.24148/wp2012-19

About the Author
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John G. Fernald is a senior research advisor in the Economic Research Department of the Federal Reserve Bank of San Francisco, and a professor of economics at INSEAD. Learn more about John G. Fernald